University To Feel Impact Of
State Budget Reductions
By Karen A. Grava

A revised state budget for the current fiscal year was adopted
by both chambers of the General Assembly late last week and awaits
action by Gov. John G. Rowland. If the Governor signs the bill, the
University will face additional cuts this year of more than $1.2
million for the Storrs-based programs and an additional $464,000 at
the Health Center.

That brings the aggregate cuts in this year's budget, not
counting cuts to fringe benefits, to $11.4 million for the
Storrs-based programs and $2.5 million for the Health Center. The
original Fiscal Year '03 appropriation to the University was
$203.9 million for the Storrs-based programs and $76.3 million for
the Health Center. After the cuts, the Fiscal Year '03
appropriations are $192.5 million for Storrs and $73.8 million for
the Health Center.

"While not good news, this development is not a
surprise," said Lorraine Aronson, vice president for financial
planning and management. "These numbers are consistent with
what we had heard was under consideration during the last couple of
weeks. We have been planning to ensure that we can cope with these
cuts. It will be quite a challenge to meet the cuts without further
staffing reductions."

The challenge is particularly daunting in the face of the
extremely cold and snowy winter that has caused the University to
incur extra costs to heat buildings and clear sidewalks and parking
lots, Aronson noted.

She said the University is still reviewing the budget revisions
to determine whether other items in the revised budget will affect
the University. But she noted that although the Legislature adopted
a provision that grants the governor increased rescission
authority, it does exempt the state's higher education
institutions from that additional authority. "That is a
positive note for us," she said.

"It goes without saying that we will continue to do our
best to make the adjustments necessary to achieve our FY '03
budget targets. With historic enrollment, constraints in the health
care market, spiking energy costs, and Mother Nature's winter
wrath, that goal will not be easily accomplished," she
said.

And it is still unclear what additional cuts over current
services might be necessary in next year's budget, which the
governor is expected to propose to the Legislature on March 4.
State budget constraints make it possible that the University will
face further reductions.

The University has reached a tentative agreement with the
American Association of University Professors promising that in
return for forgoing an annual salary increase that was scheduled to
be implemented in July, faculty reductions will be restricted to
programmatic changes.

The agreement must be ratified by the union, the Board of
Trustees, and the General Assembly before it takes effect. It is
the only agreement to date with a state employee bargaining unit to
cut costs.

The revised state budget adopted by the General Assembly also
includes a retirement incentive package that allows employees in
the state retirement system who are at least 52 years old with 10
years of service to add three chits to either their age or their
length of service. They would have to retire no later than this
June to be eligible. The provision allows for some rehiring to
replace employees who accept the retirement package, but it is
unknown how many employees might accept the package or how many
positions could be refilled.